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Margarita [4]
3 years ago
15

"Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to

bondholders each year. Which annual interest rate should they use for their bonds?
Business
1 answer:
Rudiy273 years ago
4 0

Answer:

They should use interest rate of 7.7%

Explanation:

The rate (let's call it r) should be that the annual interest of the $15,000,000 that they borrow through isssuing bond is $1,150,000

Then 15*10^6 * r = 1,150,000 => r = (1.15*10^6)/(15*10^6) = 0.077 or 7.7%

<u>Note:</u> $1,150,000 is the annual amount they could set aside for paying interest, so they should use 7.7%. If it's lower than what market requires they will have to sell the bond at a discount. If it's higher than is required they the bond would be bought at a higher price than par-value.

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If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopo
MatroZZZ [7]

If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production and increase the price to maximize profits.

<h3>Who is a monopolist?</h3>

monopolist serves as the entity that dominates a particular market in term of production, he is the one that has the highest control of the market and make the most profits.

It should be noted that If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production .

Learn more about monopolist on:

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7 0
1 year ago
Which of the following is a good marketing tactic for reaching out to cold prospects?
timama [110]

Answer:

A good marketing tactic for reaching cold prospects is Advertising

Explanation:

A cold prospect is a qualified potential customer that has little or no knowledge about your goods and service or about your company. to make them know about you can reach them through target advertising because you don't have their personal contacts yet to do them a personalized email or calls.

5 0
3 years ago
Read 2 more answers
Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra
Gnom [1K]

Answer:

Product warrant liability to be reported as on 31.12.2021* is $3.124

<em>*The procedures are attached in a microsof excel document. </em>

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6 0
3 years ago
A direct cost is a cost that is____________.
Nookie1986 [14]

Answer:

The correct answer is letter "D": Traceable to a single cost object.

Explanation:

Direct Cost for finished goods is referred to the costs of the items and services directly used in production that can be allocated to a single cost object. Other costs including rent and production site insurance are indirect costs. The cost of the finished goods may be assigned to indirect costs, but they are not direct costs because they do not change with production levels.

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Tyson Foods is the largest U.S. beef and chicken​ supplier, processing more than​ 100,000 head of cattle and​ 40-plus million ch
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Answer:

$810,000

Explanation:

The computation is shown below:

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